CBCA Diversity Disclosure Requirements Effective For 2020 Proxy Season

For the upcoming 2020 proxy season, new disclosure requirements will be effective for publicly-listed corporations incorporated under the Canada Business Corporations Act (CBCA). They mandate additional diversity disclosure in connection with an annual meeting of shareholders held on or after January 1, 2020. Notably, the new regulations align with the "comply or explain" regime adopted under Canadian securities laws, which prescribe disclosure regarding gender diversity on boards and in senior management. But the regulations also go beyond these requirements by (i) expanding the scope to include diversity disclosure with respect to a broader range of "designated groups"¹, and (ii) requiring such disclosure from "venture" issuers in addition to "non-venture" issuers (i.e., issuers listed on the Toronto Stock Exchange (TSX), TSX Venture Exchange (TSX-V) and Canadian Securities Exchange (CSE)).